A former top showjumper and leading horse trainer claims he was unfairly sacked following a row about money from a horse swap.

Ernest Dillon, 61, former manager of Kingsbarn Equestrian Centre near Falkirk, has taken his ex-employers to an employment tribunal in a bid to clear his name and win compensation. He is also claiming he was the victim of age discrimination.

An employment tribunal in Glasgow heard yesterday that the well-respected horse coach, who is a fellow of the British Horse Society, has already had a small claims action raised against him by his former boss, who is seeking to recover £500 he claims Mr Dillon owes him. Mr Dillon denies owing the money.

At yesterday's hearing Mr Aitken, 44, a director of Kingsbarn Equestrian Centre Ltd, at Wester Shieldhill, denied he had ever called Mr Dillon an "old git".

The tribunal heard earlier that a former client and employee at the equestrian centre had heard Mr Aitken directing the term at Mr Dillon prior to his dismissal.

But under cross-examination by Mr Dillon's solicitor, Mr Aitken denied the claim.

He told the tribunal how Mr Dillon was taken on to manage the new centre at a £25,000 salary. His duties included sourcing horses but Mr Aitken stressed he had to approve any purchases and all payments would be made by cheque. He told the tribunal "I don't deal with cash."

Mr Aitken said he agreed to Mr Dillon keeping his own two horses at the centre, but expected him to pay the associated costs.

He said: "I know how much it costs to keep horses. I have got 39. I told him We can store your horses but I'm not paying your bills'."

Mr Aitken said Mr Dillon was responsible for providing his horses with competition feed. He was providing top-quality stables but expected Mr Dillon to pay for food, vet bills, farrier bills and other costs. Mr Aitken claims food was billed to the equestrian centre.

He said he sacked Mr Dillon after returning from a month's holiday last January and discovering that £2000 cash had been paid to Mr Dillon as a result of a horse swap.

Mr Aitken said he was told that two horses had been swapped and £2000 paid, but that at a meeting with Mr Dillon he failed to disclose he had the money. Mr Aitken handed him a letter terminating his employment.

He told the tribunal: "How can an employer have trust in an employee when he has pocketed £2000? Why was the money not banked? Any horses we bought we paid for by cheque."

Mr Dillon earlier told the tribunal he had kept the cash for safekeeping to use on a deal lined up to buy another horse. Mr Aitken said he had left instructions before he went on holiday that there were to be no deals until he came back.

Mr Aitken said he had told Mr Dillon "Don't do anything daft" and left him a £700 float and instructions to contact him if there were any problems. He alleged that Mr Dillon subsequently cancelled a large proportion of lessons that had been booked.

On being advised of his dismissal, Mr Aitken claimed Mr Dillon "ranted" and used some very choice language.

At the dismissal meeting, Mr Aitken insisted he had asked Mr Dillon about the horse transaction. Mr Dillon said he was given no opportunity to explain what had happened before being told he was sacked.

The hearing continues today.